The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community. October is National Financial Planning Month.
In this issue:
- How Do We Create a Financial Strategy? (3 min read)
- Market Performance: The Election (chart)
- How to Switch Careers Even if You Think It's Impossible (3 min read)
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This week we have our Client Relationship Manager, Chris Levene, introducing our content in the video below!
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How Do We Create a Financial Strategy?
When training to become a financial professional, much of our course work centers on the six critical areas of creating a financial strategy. Some recognize October as Financial Planning Month, so it's an excellent opportunity to review those six personal finance areas.1
Cash Management: This is a broad topic that can address many issues. One area is creating an emergency fund, which is money that's set aside for unplanned expenses. Cash management also can include looking at your "sources and uses" of money. Financial Planning Month focuses mainly on cash management and spending habits.1
Investment Approaches: Concerns about investment approaches are among the key reasons people start a relationship with a financial professional. When reviewing investment approaches, it's critical to consider a person's goals, time horizon, and risk tolerance.
Retirement Preparation: This is another crucial reason why a person approaches a financial professional. The chief concern for 49 percent of Americans is running out of money in retirement. The retirement preparation process reviews your current situation and helps you better understand your choices.2
Protection Strategies: This area looks at how you prepared for life's potential financial risks. Protection strategies also can include health-care considerations. By the way, did you know that 44 percent of Americans cite "declining health" as their second biggest retirement concern?2
Tax Management: Do you feel comfortable with current tax laws? Are you confident about your approach to tax management? Tax rules are constantly changing, and there is no guarantee that the tax landscape will remain the same in years ahead. Financial professionals often work with tax, legal, or accounting professionals when creating an overall tax management strategy.
Estate Strategies: How well you prepare today may help determine how you distribute your assets after you're gone. Much like tax rules, estate rules are continually changing, and today's landscape may change in a few years. Financial professionals often work with legal professionals when creating an estate approach.
It can be a challenge to feel confident in all six key areas of creating a financial strategy. If you think you may need help, please give us a call. We'd welcome the chance to review your approach.
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Market Performance: The Election
With early voting underway in a few states, we are anticipating the results of the election and its impacts on the stock market. To answer some of our reader's questions, we will be including a chart that graphically represents what has happened in past elections, leading up until election day.
This week, we have included a graph showing how weakness in S&P 500 performance before the election has historically supported the opposition party. We will be back with a new graph next week. If you have any more questions, feel free to give us a call!
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How to Switch Careers Even if You Think It's Impossible
Is your career fulfilling? Do you see yourself staying in your current job long-term? During any sort of crisis, people begin to question their life choices and re-evaluate. If you feel like you have been doing this a lot lately, you are not alone.
According to a recent Indeed survey, 49% of people say that they have made a dramatic career switch. Just because so many people have made a change, doesn't mean that it is any easier. With the pandemic and volatile job market, this seems like an almost impossible task. So, how do you switch careers in these unique circumstances?
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Important Information
1. NationalDayCalendar.com, October 2020
2. AARP.com, May 21, 2019
The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The content is developed from sources believed to be providing accurate information.
The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SECregistered investment advisory firm.
The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.